Are Extended Warranties Worth It?

I am currently in the process of pricing trucks, both new and used.

I am focusing primarily on Freightliner or Western Star (Daimler), but I thought I would pose the question more generally for feedback. Based on reading many posts in various threads, the common theme seems to be "Avoid any aftermarket warranty on a used truck" and "Get the 'gold-plated' manufacturer/dealer extended warranty on a new truck".

Thoughts?

As an example, on a new Cascadia the following warranties and their costs were offered:

EW4; DD15 $0 deductible, 6yr/600k, cost is $6,775, Basically engine, egr, electrical and after-treatment systems. This is the most comprehensive level that Daimler offers.

Climate Control System Less Park Smart; 5yr/500k; cost is $1,450. All the HVAC systems less the Park Smart system (if equipped).

Cooling System; 5yr/500k; cost is $740. Radiator components, cooling fan, clutch, etc.

Towing Extended/Roadside Service Warranty; 1yr/unlimted miles; $550 cap per occurrence. Cost is $200.

So in this example, the total cost is $9,165 for the noted warranties. For this particular truck, this total represents just a bit over 7% of the total cost of the truck before the warranty costs are considered.

I'm also talking with a gentleman about a used truck, and he has the option to transfer the remainder of his aftermarket extended warranty. It would cost his buyer around $3,500-$4,000 to do that depending on the actual mileage at the time of sale. That particular truck is around 6 years old with around 600,000 miles on it. The extended warranty, if transferred, would cover another 18 months and around 200,000 miles.

I just thought I would open it up for thoughts. I know everyone has their own opinions, but perhaps the discussion will be helpful to those of us going through the process.

Thanks!

 

Pete, Do you remember what company your aftermarket extended warranty was with?

 

Are you referring to aftermarket warranties? If so, please note the companies you've had good success with. I'm curious. Thx